What's happened
As of December 14, 2025, Netflix's $72 billion acquisition of Warner Bros. Discovery's studio and HBO Max faces a hostile takeover bid from Paramount Skydance, led by David and Larry Ellison. The Ellisons argue their all-cash $30-per-share offer for the entire WBD company is superior to Netflix's $27.75 cash-and-stock bid for the studio and streaming assets. Regulatory scrutiny, including President Trump's personal involvement, complicates the deal's approval.
What's behind the headline?
The Battle for WBD: A Clash of Titans
The ongoing bidding war for Warner Bros. Discovery is more than a simple corporate acquisition; it is a high-stakes contest involving media power, regulatory influence, and political connections. Paramount Skydance's Ellisons are leveraging their all-cash offer and ties to President Trump to challenge Netflix's winning bid, which includes stock and relies on spinning off cable assets.
Regulatory and Political Dynamics
President Trump's personal involvement in the antitrust review is unprecedented, signaling the deal's political sensitivity. The DOJ's antitrust division views the merger as potentially monopolistic, given Netflix's dominant 300 million subscribers combined with HBO Max's 100 million. The Ellisons argue their bid faces fewer regulatory hurdles due to less overlap.
Financial and Strategic Implications
Netflix's bid focuses on streaming and studio assets, while the Ellisons seek the entire company, including cable channels like CNN. The Ellisons' all-cash offer provides immediate shareholder value but depends on foreign sovereign wealth funds and debt financing, raising questions about control and funding.
Forecast and Impact
The bidding war will likely escalate, with Paramount Skydance prepared to increase its offer. Regulatory approval remains the biggest obstacle, with Trump's administration and DOJ poised to scrutinize the deal intensely. Shareholders face uncertainty, and the outcome will reshape the streaming and media landscape, affecting content availability and market competition.
What This Means for Consumers
A Netflix-WBD merger could consolidate major franchises and streaming subscribers, potentially impacting subscription pricing and content diversity. The Ellisons' bid promises regulatory certainty but faces skepticism about financing and foreign involvement. Consumers should watch for changes in streaming options and pricing as the deal unfolds.
What the papers say
Charles Gasparino of the NY Post provides detailed coverage of the bidding war, highlighting the Ellisons' all-cash $30-per-share hostile bid and their criticism of Netflix's mixed cash-and-stock offer. Gasparino notes the Ellisons' reliance on Middle Eastern sovereign wealth funds and their appeal to shareholders, contrasting with Netflix's regulatory challenges and CEO Ted Sarandos's close ties to WBD CEO David Zaslav.
Business Insider UK and The Independent emphasize President Trump's unprecedented personal involvement in the antitrust review, quoting him saying, "It could be a problem" due to Netflix's "very big market share." They also report Trump's meeting with Sarandos and his cautious stance on approving the deal.
The New York Times and The Guardian explore the regulatory complexities, with the DOJ's antitrust division preparing for a multiyear investigation. The Guardian quotes experts calling Trump's involvement "unprecedented" and notes industry concerns about market concentration.
Together, these sources paint a picture of a complex, politically charged acquisition battle with significant implications for the media industry and consumers.
How we got here
Warner Bros. Discovery (WBD) was auctioned after a steep stock decline. Paramount Skydance, backed by the Ellisons, initially bid $23.50 per share for all assets. Netflix later offered $27.75 per share for WBD's studio and HBO Max, winning board approval. The Ellisons launched a hostile bid, citing regulatory risks and valuation concerns, while President Trump and the DOJ weigh antitrust implications.
Go deeper
- What are the main differences between Netflix's and Paramount Skydance's offers?
- How is President Trump involved in the Warner Bros. Discovery acquisition?
- What are the antitrust concerns surrounding the Netflix-WBD deal?
More on these topics
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Netflix, Inc. is an American technology and media services provider and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California.
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Theodore Anthony Sarandos Jr. is an American businessman who serves as the co-chief executive officer and chief content officer for Netflix.
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Warner Bros. Discovery is an upcoming American multinational mass media and entertainment conglomerate. The company will be formed though the merger of WarnerMedia and Discovery, Inc., which is expected to be completed by mid-April 2022.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Lawrence Joseph Ellison is an American business magnate, investor, and philanthropist who is a co-founder and the executive chairman and chief technology officer of Oracle Corporation.
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David M. Zaslav is the president and chief executive officer of Discovery Inc., a position he has held since January 2007.
Most recently under Zaslav, Discovery acquired Scripps Networks Interactive, in a transaction which closed in March 2018.
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David Ellison is an American film producer and the founder and CEO of Skydance Media.
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ViacomCBS Inc. is an American diversified multinational mass media conglomerate formed through the merger of CBS Corporation and the second incarnation of Viacom in 2019, which were split from the original incarnation of Viacom in 2005.
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Brian Roberts may refer to:
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Warner Bros. Entertainment Inc., is an American diversified multinational mass media and entertainment conglomerate headquartered at the Warner Bros.